Application In the case of Lee v. Lee’s Air Farming Ltd (1961) the court held that a person can act in dualcapacity if there is a valid and legal contract between the company and the worker concerned andthus allowed a single person to act as am employee and a director. The gist of the case was that acompany once registered as a company under the relevant provisions of the act would have allthe powers to act as a separate entity for all legally applied purpose4. Salomon & Co Ltd was a duly registered company under the relevant provisions of CompaniesAct 1862 of United Kingdom and form the case the followings have emerged:(a) a company would have all the rights as natural person in owning its separate properties. (b) a company would also have the right to incur debts and issue debts in the market on its ownand it would solely be liable for its own debts5. (c) A company would be allowed to make contracts with employees of the company andoutsiders as well which was reasserted in the case of Lee v. Lee’s Air Farming Ltd (1961). (d) Because a company is regarded as a separate entity or judicial person it would can commitcrimes and torts. Conclusion Thus, it is quite clear that while the ruling in the case of Salomon v. A Salomon & Co. Ltd(1897) provided the legal sanctity to the companies, the same also provided a legal option oftrying to ascertain if the companies are doing their activities legally or they have engagedthemselves in illegal activities which has been prohibited under provisions of other laws of thestate. If it is ever found that the companies concerned have been engaged in illegal and otheractivities which are not endorsed by law the real activities of a company like Plutus payroll canbe checked thoroughly for breach of law6. Thus, it can be said that Plutus payroll being a registered entity in Australia enjoyed the privilegeof being a corporate entity and thus also enjoyed the concept of separate legal entity as endorsedin the above case settlements beforehand. Footnotes:4. Bredeson, D. A. (2013). Business law and the Legal environment . Chicago: south western Cengage Learning.5. Taylor, C. (2016). Company Law - Law Express (4th ed.). london: Pearson Education Limited.6. Roach, L. (2017). Company law- Guide and Revision (4th ed.). Leicester: Oxford University Press.

+13062052269

info@desklib.com